Mobius' next target: bring FP Bourse price to the same level as the asset value
Stock repurchase and persuading the Romanian state to
privatise energy companies make the "ace" up the sleeve of Franklin
Templeton manager to boost the price of FP shares on the Bourse, so
that it should be as close as possible or even equal that of the
Fund value of 1.11 RON/share.
After having turned the improbable possible and listed Fondul
Proprietatea on the Bucharest Stock Exchange, Franklin Templeton's
manager now has the task of bolstering the value of FP shares
because compensating tens of thousand former owners, as well as the
sum he gets for the management mandate depend on the price of the
share on the Bourse.
"It is very important to boost the Fund's value so that we should
narrow down the gap between the share price, now at 0.6 RON on the
Bourse (yesterday around 11.00 i.e.) and the unit value of the net
asset, of 1.1 RON, and maybe even go beyond this threshold. We will
decide for the Fund to buy back shares to maintain the price.
However, if the state returned the money plus the interest from
Romgaz' donation or decided to privatise Hidroelectrica,
Nuclearelectrica and float them on the Bourse, so that it should be
left with just 20% in these companies, then it would be interesting
to see the trend of FP shares," said Mark Mobius, executive
chairman of Templeton Asset Management, the emerging market
investment arm of Franklin Templeton.